Crude for July delivery jumped more than $5 per barrel in New York yesterday (Wednesday) to close at $136.38 per barrel on declines in U.S. supplies and refinery activity.

US airlines are forecast to lose a record $7.2 billion this year, in part because most use gas-guzzling elderly Boeing 767s as opposed to newer, more fuel-efficient planes common in European fleets.

American Airlines, Continental and Delta have all announced cutbacks due to rising fuel costs.

Consumers are also being squeezed. USA Today reports that summer airfares in the US are set to rise by as much as four times thanks to spiraling oil prices.

“The sector-wide downturn is pretty textbook,” says Theo Casey in Fleet Street Daily.

Good lord, haven’t we already had enough preening and posturing by clueless lawmakers over the alleged “manipulation” of the oil markets?

Both gold and silver did virtually nothing on Thursday until shortly after London opened. Then (just like Wednesday) a sell-off began in both metals which lasted until shortly after the Comex opened in New York.

In the energy market Thursday, crude for July delivery retreated, closing at $126.62/barrel, down $4.41. June reformulated gasoline lost 5 cents, to $3.40/gallon.

The base metals were mostly in the red on Wednesday. Copper was erratic, bouncing all over during the day, but ended up sliding somewhat, finishing at $3.8102/lb., down 3 cents.

Something very unusual is happening in the oil markets… and it’ll keep the oil price way above $100 for the rest of year.

With oil prices pulling back this week, perhaps not unsurprisingly, from the psychological barrier of $125 a barrel, it’s a good time to take stock of where we are and where we’re going.

Gold held steady at around $945 in the far East, but started down once London opened, and continued to plummet through the first hour of the New York session on Friday, falling as low as $905 before turning north for the balance of the day and finishing at $916.20, down $18.10. For the week, gold lost 1.3%.